Plot hole: Andy is suspected of having killed Eddie Caputo, because he was at the scene when Eddie's house blew up and Eddie was killed. But there are glaring things that go unquestioned: None of the cops seem to think it's strange that a six-year-old kid would travel by himself so far to some random house in order to blow it up. The South Side neighborhood where Eddie lives is halfway across the city from Andy's apartment. How did Andy know where Eddie lived? How do the cops think he even knew Eddie at all? None of them address this most puzzling problem.
Suggested correction: The police believe Andy to be insane (hence why he is sent to a mental institution instead of juvenile hall), and thus do not believe his choice of victims to be in any way rational.
Also, as unlikely as it is that a six-year-old child could (or would) travel halfway across the city to murder a random person, the possibility that a child's doll came to life and carried out the act was considered far too outlandish at that point in the plot.
Suggested correction: We don't see the entire investigation. We just see the cops holding Andy then taking him to a psychiatric clinic. Chances are they were asking those questions and we just didn't see it because it's not important to the plot. Regardless, the cops have every reason to believe Andy either knows about or was partly responsible for the murders considering he keeps showing up at murder scenes. There's only so many conclusions you can draw, even if they don't make sense.
Stupidity: John, the guy who taught Chucky the voodoo spell is confronted by Chucky later on in doll form. When things don't go how Chucky wants, he finds a Voodoo doll of the same guy just lying around and uses it to torture him. So this idiot who knows Voodoo and what it does, happens to have a Voodoo doll of himself just lying around? Yeah sure, that can't go wrong at all.
Suggested correction: Not all magic is evil, and the doll could've been made for something else.
Continuity mistake: At the end, when Andy's mom shoots Chucky for the first time, it doesn't really faze him; he just keeps walking. But in the bedroom, when she shoots him through the heart, the bullet impact causes him to fly several feet through the air.
Suggested correction: Because shooting him in the heart is the only way to kill him, also when Mike Norris shot him he got sent flying, but when his body parts get shot off he still walks.
It has to be a human heart in order for him to die, that's what the man told Karen.
Plot hole: How would little Andy know how to get from the mental hospital to his house all alone?
Suggested correction: Maybe he asked around or took the bus. If he can get to Eddie's with Chucky's help, then this probably wouldn't be a problem for him, or he just ran around until he saw it. Just because we don't see it, doesn't mean it's a plot hole.
Other mistake: Being struck on the forehead with a toy hammer would not cause someone to be knocked off balance to the point that they are flying backwards the 15-20 feet or so we see with Maggie.
Suggested correction: Yet, Chucky hit her pretty hard and she lost her footing.
Plot hole: After Chucky electrocutes the psychiatrist at the hospital with Andy there witnessing it, all of a sudden Andy is at home on his own barricading himself in then hiding out waiting for Chucky to turn up. How did Andy get from the hospital to his home considering no adults were with him? (01:07:00 - 01:08:40)
Suggested correction: This is a question, not a plot hole. We already saw Andy made his way to Eddie's house on his own. We just aren't shown what he did to get home.
